The Department for Work and Pensions (DWP) has confirmed that only three of the 18 waiver requests for Carer's Allowance overpayments were approved in the 2025/26 financial year, with the remaining 15 refused. This means the overwhelming majority of claimants who received overpayments will still be required to repay the money.
The update came in response to a written question from Anna Dixon, the Labour MP for Shipley, who asked the Secretary of State for Work and Pensions how many waivers for Carer's Allowance overpayments were applied for and accepted during that period. Sir Stephen Timms, the Labour MP for East Ham, provided the official reply in the House of Commons.
Exceptional Circumstances Required
Sir Stephen explained that the DWP has discretion to waive recovery of an overpayment only in "very exceptional circumstances", and that this discretion is a derogation granted by the Treasury from the absolute requirement to recover all overpayments of public money. He stated that a waiver is considered only where there is reasonable evidence that recovering the overpayment would be detrimental to the health and/or welfare of the debtor or their family, and that "very specific and compelling grounds" must exist for a waiver to be agreed.
According to DWP rules, the Secretary of State has a duty to protect public funds and will seek to recover debt in all circumstances where it is reasonable to do so. The legislation governing debt recovery gives the Secretary of State discretion over whether and how to recover money owed, including the option to cancel part or all of a debt through write-off or waiver, to vary the rate of recovery, or to suspend recovery entirely.
When Discretion Can Be Exercised
The DWP notes that this discretion can be considered at any point in the debt journey, either when an overpayment is first discovered and before it is notified to the claimant, or after notification where the claimant has asked the department to examine the circumstances surrounding their overpayment.
The figures highlight the strict approach the DWP takes to overpayment recovery, with only a tiny fraction of waiver requests succeeding. For the vast majority of Carer's Allowance claimants who receive an overpayment, repayment remains mandatory unless they can demonstrate exceptional circumstances that meet the DWP's stringent criteria.
